Have you ever asked yourself if you should move or consider a home addition?
You’ve been in your house for a while and are still fond of the place. But it’s no longer exactly what you need or want. You might be considering a move. But what if the idea of moving stresses you out? You may want to consider an alternative option.
Moving isn’t the only way to get a larger home or upgrade your living space, after all. You could also remodel what you have. A move that has become increasingly popular as housing prices continue to surge and available inventory remain surprisingly low.
Well, you’ll have to think about your emotional attachment to the house, whether renovating will bring a good return on your investment and whether you can afford to buy a replacement home. Now, Let’s talk about the pros and cons of moving versus home addition.
Moving vs. Remodeling: Pros and Cons
Remodeling may not be as exciting as buying a new home, but it could be a more cost-effective move in the end. This is partly because moving itself is costly as is selling your existing home.
Obviously, home prices have been rising dramatically and it is a huge consideration for anyone considering moving. Sellers may receive a higher sales price for their home, but they’ll likely pay more when they go to take out a mortgage for a new property. There are other costs to be aware of. All of those expenses can and will add up over time.
So should you move, or should you consider home addition? Here are some of the advantages and disadvantages to consider:
Advantages of Moving
- You can physically move your location.
- You don’t have to live in a construction zone.
- You can purchase a home that’s 100% turnkey.
Disadvantages of Moving
- You may not get exactly what you want.
- You may have to leave an area you love.
- Buying a home and moving can be time-consuming and stressful.
- Moving is expensive.
Advantages of Home Addition
- You can plan a remodel to meet your exact specifications.
- You may be able to use home equity to pay for the renovation.
- If you love your neighborhood, you don’t have to move.
- You can avoid the costs of moving and selling your home.
Disadvantages of Home Addition
- You’ll probably face some surprise expenses.
- Remodeling can be a pain.
- You may not get your money back out of your remodel.
Move or Home Addition?
It would be great to ask yourself first what your housing goals will be in the next five to 10 years. If you like your home and it works for your job and your family, then it can make sense to remodel and work with what you have.
If you plan to move in a few years anyway, then you may want to consider staying where you are and not remodeling. Moreover, you should consider the lifestyle will come into play both today and tomorrow. Are the kids now out of college and starting families on their own?
If they are or soon will be, you may not need a larger home at all. That could benefit from a simple home addition project to improve your home’s flow or make it more comfortable.
Finances should also one of the lists of your considerations. Moving can be extremely expensive, but so can remodeling. Before you choose either option, make sure you can truly afford it. The money you borrow will ultimately need to be paid back, so you should be prepared to pay for your dream home for the long haul.